Century Casinos, Inc. Announces Second Quarter 2012 Results

COLORADO SPRINGS, Colo., Aug. 8, 2012 /PRNewswire/ -- Century Casinos, Inc. (NASDAQ Capital Market® and Vienna Stock Exchange: CNTY) today announced its financial results for the three and six months ended June 30, 2012.

Second Quarter 2012 Highlights*

  • Adjusted EBITDA** was $2.9 million, a 5% increase from the three months ended June 30, 2011.
  • Net earnings were $1.2 million, a 78% increase from the three months ended June 30, 2011.
  • Earnings per share were $0.05, a $0.02 per share increase from the three months ended June 30, 2011.

For the Three Months

For the Six Months


Amounts in thousands, except share and per share data

Ended June 30,

Ended June 30,

Consolidated Results:

2012

2011

% Change

2012

2011

% Change

Net operating revenue

$17,791

$18,002

-1%

$35,360

$35,117

1%

Earnings from operations

1,695

977

74%

3,267

1,733

89%

Net earnings

1,148

644

78%

2,281

1,008

126%








Adjusted EBITDA**

$2,886

$2,760

5%

$5,645

$5,284

7%








Earnings per share:







Basic 

$0.05

$0.03

67%

$0.10

$0.04

150%

Diluted

$0.05

$0.03

67%

$0.09

$0.04

125%

Weighted-average common shares: 







Basic 

23,890,405

23,717,165


23,883,919

23,714,215


Dilutive

24,060,322

24,026,095


24,054,904

24,015,947


"We posted solid results in the second quarter, but the Waldo Canyon wildfires had a significant negative impact on our operations in Cripple Creek, Colorado. During the more than 15 days it took to contain the wildfires, more than 35,000 people in Colorado Springs, the metropolitan population which the casino primarily serves, had to be evacuated, and the main highway to the casino was closed for a total of eight days. Still, we managed to increase earnings from operations by 74% and net earnings by 78% compared to the same period in 2011. The continued growth in our earnings per share, together with the new CAD 28 million credit agreement with the Bank of Montreal, give us support to actively pursue domestic and international casino opportunities." said Erwin Haitzmann and Peter Hoetzinger, Co Chief Executive Officers of Century Casinos.

Three and Six Months Ended June 30, 2012 Results*

Net operating revenue decreased by $0.2 million, or 1%, and increased $0.2 million, or 1%, for the three and six months ended June 30, 2012 compared to the three and six months ended June 30, 2011, respectively. Following is a summary of the changes in net operating revenue by property or category for the three and six months ended June 30, 2012 compared to the three and six months ended June 30, 2011:


Net Operating Revenue


For the Three Months 
Ended June 30,

For the Six Months 
Ended June 30,


2012

vs. 2011

2012

vs. 2011

Amounts in millions

Change

% Change

Change

% Change

Century Casino & Hotel, Edmonton

($0.2)

(3%)

$0.0

0%

Century Casino, Calgary

(0.1)

(3%)

(0.1)

(1%)

Century Casino & Hotel, Central City

0.1

1%

0.2

2%

Century Casino & Hotel, Cripple Creek

(0.1)

(2%)

(0.0)

0%

Cruise Ships & Other

0.0

2%

0.1

4%

Total

($0.2)

(1%)

$0.2

1%

Earnings from operations increased by a total of $0.7 million, or 74%, and $1.5 million, or 89%, for the three and six months ended June 30, 2012 compared to the three and six months ended June 30, 2011, respectively. Following is a summary of the change in earnings from operations by property or category for the three and six months ended June 30, 2012 compared to the three and six months ended June 30, 2011: 


Earnings from Operations


For the Three Months
Ended June 30,

For the Six Months 
Ended June 30,


2012

vs. 2011

2012

vs. 2011

Amounts in millions

Change

% Change

Change

% Change

Century Casino & Hotel, Edmonton

($0.1)

(3%)

$0.1

3%

Century Casino, Calgary

(0.1)

(142%)

0.0

21%

Century Casino & Hotel, Central City

0.4

134%

0.7

118%

Century Casino & Hotel, Cripple Creek

0.1

12%

0.1

7%

Cruise Ships & Other

(0.1)

(35%)

(0.1)

(13%)

Corporate Other

0.5

33%

0.7

24%

Total

$0.7

74%

$1.5

89%

Net earnings increased by $0.5 million, or 78%, and $1.3 million, or 126%, for the three and six months ended June 30, 2012 compared to the three and six months ended June 30, 2011, respectively. Following is a summary of the changes in net earnings by property or category for the three and six months ended June 30, 2012 compared to the three and six months ended June 30, 2011: 


Net Earnings


For the Three Months 
Ended June 30,

For the Six Months
Ended June 30,


2012

vs. 2011

2012

vs. 2011

Amounts in millions

Change

% Change

Change

% Change

Century Casino & Hotel, Edmonton

($0.1)

(9%)

$0.1

4%

Century Casino, Calgary

(0.0)

(26%)

0.2

64%

Century Casino & Hotel, Central City

0.2

124%

0.4

109%

Century Casino & Hotel, Cripple Creek

0.0

12%

0.0

7%

Cruise Ships & Other

(0.1)

(43%)

(0.1)

(22%)

Corporate Other

0.5

42%

0.7

35%

Total

$0.5

78%

$1.3

126%

Items deducted from or added to earnings from operations to arrive at net earnings include interest income, interest expense and gains/losses on foreign currency transactions.

Overall, the increase in earnings from operations and net earnings in the three and six months ended June 30, 2012 compared to the three and six months ended June 30, 2011 is due to increased efforts to attract customers and generate additional revenue and control costs at all properties and a decrease in depreciation expense due to fully depreciated assets in Edmonton and Central City.

Property and Category Results
(in thousands)

The following table shows net operating revenue and Adjusted EBITDA** by property or category for the three and six months ended June 30, 2012 and June 30, 2011.


Net Operating Revenue

Adjusted EBITDA**

Net Operating Revenue

Adjusted EBITDA**


For the Three Months

For the Three Months

For the Six Months

For the Six Months


Ended June 30,

Ended June 30,

Ended June 30,

Ended June 30,


2012

2011

2012

2011

2012

2011

2012

2011

Century Casino & Hotel, Edmonton

6,006

6,185

1,969

2,163

11,948

11,938

3,860

4,003

Century Casino, Calgary

2,398

2,467

30

120

4,999

5,056

283

219

Century Casino & Hotel, Central City

4,581

4,520

986

951

9,090

8,920

1,958

1,909

Century Casino & Hotel, Cripple Creek

3,150

3,211

736

685

6,029

6,049

1,261

1,216

Cruise Ships & Other

1,656

1,619

220

314

3,294

3,154

457

546

Corporate

0

0

(1,055)

(1,473)

0

0

(2,174)

(2,609)

Consolidated

17,791

18,002

2,886

2,760

35,360

35,117

5,645

5,284

Balance Sheet and Liquidity

As of June 30, 2012, the Company had $19.7 million in cash and cash equivalents and $3.6 million in debt obligations on its balance sheet compared to $25.2 million in cash and cash equivalents and $9.1 million in debt obligations at December 31, 2011.

On May 23, 2012, the Company, through its Canadian subsidiaries entered into a CAD 28.0 million ($27.5 million) credit agreement with the Bank of Montreal. Proceeds from the BMO credit agreement were used to repay the Company's mortgage debt related to the Edmonton property and will also be used to pursue the development or acquisition of new gaming opportunities and for general corporate purposes. The BMO credit agreement has a term of five years and is guaranteed by the Company.

Conference Call Information

Today the Company will post a copy of the Form 10-Q filed with the SEC for the quarter ended June 30, 2012 on its website at http://corporate.cnty.com/investor-relations/sec-filings.

Century Casinos will host its second quarter 2012 earnings conference call August 8, 2012 at 11:00 am MDT; 7:00 pm CET, respectively. U.S. domestic participants should dial 1-800-894-5910. For all other international participants, please use +1-785-424-1052 to dial in. Participants may also listen to the call live or obtain a recording of the call on the Company's website at http://corporate.cnty.com/investor-relations/financial-results/.

*Amounts presented are rounded. As such, rounding differences could occur in period over period changes and percentages reported.

**Adjusted EBITDA is a Non-GAAP financial measure. See discussion and reconciliation of Non-GAAP financial measures in Supplemental Information below.

CENTURY CASINOS, INC. AND SUBSIDIARIES

FINANCIAL INFORMATION – US GAAP BASIS


Century Casinos, Inc.

Condensed Consolidated Statements of Earnings






For the Three Months 
Ended June 30,

For the Six Months 
Ended June 30,

Amounts in thousands, except for per
share information

2012

2011

2012

2011






Operating revenue:





  Gaming

$15,709

$15,928

$30,968

$30,753

  Hotel, bowling, food and beverage

3,135

3,141

6,456

6,384

  Other

1,103

1,004

2,046

1,939

           Gross revenue

19,947

20,073

39,470

39,076

Less: Promotional allowances

(2,156)

(2,071)

(4,110)

(3,959)

Net operating revenue

17,791

18,002

35,360

35,117

Operating costs and expenses:





  Gaming

7,459

7,341

14,692

14,272

  Hotel, bowling, food and beverage

2,420

2,553

4,857

5,064

  General and administrative

5,320

5,848

10,624

11,216

  Depreciation

1,180

1,665

2,358

3,306

Total operating costs and expenses

16,379

17,407

32,531

33,858

Earnings from equity investment

283

382

438

474

Earnings from operations

1,695

977

3,267

1,733

Non-operating income (expense):





  Interest income

23

5

29

7

  Interest expense

(395)

(197)

(543)

(443)

  Gains on foreign currency transactions and other

22

114

17

189

Non-operating (expense) income, net

(350)

(78)

(497)

(247)

Earnings before income taxes

1,345

899

2,770

1,486

Income tax provision (benefit)

197

255

489

478

Net earnings

$1,148

$644

$2,281

$1,008






Earnings per share:





  Basic

$0.05

$0.03

$0.10

$0.04

  Diluted

$0.05

$0.03

$0.09

$0.04







CENTURY CASINOS, INC. AND SUBSIDIARIES

FINANCIAL INFORMATION – US GAAP BASIS


Century Casinos, Inc.

Condensed Consolidated Balance Sheets

(Amounts in thousands)


June 30,

December 31,

2012

2011

Assets



Current Assets

$21,956

$27,286

Property and equipment, net

98,748

99,605

Other Assets

10,680

9,836

Total Assets

$131,384

$136,727




Liabilities and Shareholders' Equity



Current Liabilities

$10,381

$21,359

Non-Current Liabilities

6,234

2,828

Shareholders' Equity

114,769

112,540

Total Liabilities and Shareholders' Equity

$131,384

$136,727


CENTURY CASINOS, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION

The following tables show Adjusted EBITDA margins and Adjusted EBITDA to net earnings reconciliations by property or category. The Company defines Adjusted EBITDA margin as Adjusted EBITDA divided by net operating revenue. Management uses this margin as one of several measures to evaluate the efficiency of the Company's casino operations. A discussion of Adjusted EBITDA follows the tables.

Century Casinos, Inc.

Adjusted EBITDA Margins by Property or Category





For the Three Months

For the Six Months

Ended June 30,

Ended June 30,


2012

2011

2012

2011

Century Casino & Hotel, Edmonton

33%

35%

32%

34%

Century Casino, Calgary

1%

5%

6%

4%

Century Casino & Hotel, Central City

22%

21%

22%

21%

Century Casino & Hotel, Cripple Creek

23%

21%

21%

20%

Cruise Ships & Other

13%

19%

14%

17%

Consolidated Adjusted EBITDA Margin

16%

15%

16%

15%






Reconciliation of Adjusted EBITDA * to Net Earnings (Loss) by Property or Category


For the three months ended June 30, 2012


Amounts in thousands


Three Months Ended June 30, 2012


Edmonton

Calgary

Central City

Cripple Creek

Cruise Ships & Other

Corporate

Total


Net earnings (loss)

1,075

(92)

396

300

93

(624)

1,148

Interest income

(5)

0

0

0

0

(18)

(23)

Interest expense

394

0

0

0

0

1

395

Income taxes (benefit)

280

(75)

243

183

11

(444)

197

Depreciation

244

209

347

253

98

29

1,180

Non-cash stock based compensation

0

0

0

0

0

(5)

(5)

Foreign currency (gains) losses

(19)

(12)

0

0

3

6

(22)

Loss on disposition of fixed assets

0

0

0

0

16

0

16

Adjusted EBITDA*

1,969

30

986

736

220

(1,055)

2,886











CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION


Century Casinos, Inc.

Reconciliation of Adjusted EBITDA * to Net Earnings (Loss) by Property or Category

For the three months ended June 30, 2011


Amounts in thousands


Three Months Ended June 30, 2011


Edmonton

Calgary

Central City

Cripple Creek

Cruise Ships & Other

Corporate

Total


Net earnings (loss)

1,182

(73)

177

268

160

(1,070)

644

Interest income

(5)

0

0

0

0

0

(5)

Interest expense

197

1

0

0

0

(1)

197

Income taxes (benefit)

414

(2)

96

164

3

(420)

255

Depreciation

377

194

664

258

108

64

1,665

Non-cash stock based compensation

0

0

0

0

0

96

96

Foreign currency (gains) losses

(2)

0

0

0

0

(112)

(114)

Loss (gain) on disposition of fixed assets

0

0

14

(5)

43

(30)

22

Adjusted EBITDA*

2,163

120

951

685

314

(1,473)

2,760



Reconciliation of Adjusted EBITDA * to Net Earnings (Loss) by Property or Category

For the six months ended June 30, 2012



Amounts in thousands



Six Months Ended June 30, 2012


Edmonton

Calgary

Central City

Cripple Creek

Cruise Ships & Other

Corporate

Total


Net earnings (loss)

2,153

(84)

776

469

219

(1,252)

2,281

Interest income

(8)

0

0

0

0

(21)

(29)

Interest expense

541

0

0

0

0

2

543

Income taxes (benefit)

694

(31)

475

287

24

(960)

489

Depreciation

486

413

701

505

195

58

2,358

Non-cash stock based compensation

0

0

0

0

0

(2)

(2)

Foreign currency (gains) losses

(6)

(15)

0

0

3

1

(17)

Loss on disposition of fixed assets

0

0

6

0

16

0

22

Adjusted EBITDA*

3,860

283

1,958

1,261

457

(2,174)

5,645









Century Casinos, Inc.

Reconciliation of Adjusted EBITDA * to Net Earnings (Loss) by Property or Category

For the three months ended June 30, 2011


Amounts in thousands



Six Months Ended June 30, 2011


Edmonton

Calgary

Central City

Cripple Creek

Cruise Ships & Other

Corporate

Total


Net earnings (loss)

2,080

(236)

372

437

279

(1,924)

1,008

Interest income

(7)

0

0

0

0

0

(7)

Interest expense

440

1

0

0

0

2

443

Income taxes (benefit)

756

32

203

268

5

(786)

478

Depreciation

741

383

1,319

516

219

128

3,306

Non-cash stock based compensation

0

0

0

0

0

192

192

Foreign currency (gains) losses

(7)

39

0

0

0

(221)

(189)

Loss (gain) on disposition of fixed assets

0

0

15

(5)

43

0

53

Adjusted EBITDA*

4,003

219

1,909

1,216

546

(2,609)

5,284

*  The Company defines Adjusted EBITDA as net earnings (loss) before interest, income taxes, depreciation, amortization, pre-opening expenses, non-cash stock based compensation charges, asset impairment costs, gains (losses) on disposition of fixed assets, discontinued operations, realized foreign currency gains (losses) and certain other one-time items. Intercompany transactions consisting primarily of management and royalty fees and interest, along with their related tax effects, are excluded from the presentation of net earnings and Adjusted EBITDA reported for each property. Not all of the aforementioned items occur in each reporting period, but have been included in the definition based on historical activity. These adjustments have no effect on the consolidated results as reported under accounting principles generally accepted in the United States of America ("US GAAP"). Adjusted EBITDA is not considered a measure of performance recognized under US GAAP. Management believes that Adjusted EBITDA is a valuable measure of the relative performance of its properties and the Company. The gaming industry commonly uses Adjusted EBITDA as a method of arriving at the economic value of a casino operation. Management uses Adjusted EBITDA to compare the relative operating performance of separate operating units by eliminating the above mentioned items associated with the varying levels of capital expenditures for infrastructure required to generate revenue, and the often high cost of acquiring existing operations. EBITDA (Earnings before interest, taxes, depreciation and amortization) is used by the Company's lending institution to gauge operating performance. The Company's computation of Adjusted EBITDA may be different from, and therefore may not be comparable to, similar measures used by other companies within the gaming industry. Please see the reconciliation of Adjusted EBITDA to net earnings (loss) above.

CENTURY CASINOS, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION

About Century Casinos, Inc.:

Century Casinos, Inc. is an international casino entertainment company that owns and operates Century Casino & Hotels in Cripple Creek and Central City, Colorado, and in Edmonton, Alberta, Canada and the Century Casino in Calgary, Alberta, Canada. The Company also operates casinos aboard twelve luxury cruise vessels (Regatta, Nautica, Marina, Riviera, Mein Schiff 1, Mein Schiff 2, Wind Surf, Wind Star, Wind Spirit, Seven Seas Voyager, Seven Seas Mariner and Seven Seas Navigator). Through its Austrian subsidiary, Century Casinos Europe GmbH, the Company holds a 33.3% ownership interest in Casinos Poland Ltd., the owner and operator of eight casinos in Poland. The Company also manages the operations of the casino at the Radisson Aruba Resort, Casino & Spa in Aruba, Caribbean. Century Casinos, Inc. continues to pursue other international projects in various stages of development.

For more information about Century Casinos, visit our website at www.centurycasinos.com. Century Casinos' common stock trades on The NASDAQ Capital Market® and the Vienna Stock Exchange under the symbol CNTY.

This release may contain "forward-looking statements" within the meaning of Section 27A of the Security Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and assumptions of the management of Century Casinos based on information currently available to management. Such forward-looking statements include, but are not limited to, statements regarding future results of operations, operating efficiencies, synergies and operational performance, economic improvements in 2012 and plans for our casinos and our Company. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Important factors that could cause actual results to differ materially from the forward-looking statements include, among others, the risks described in the section entitled "Risk Factors" under Item 1A in our Annual Report on Form 10-K for the year ended December 31, 2011. Century Casinos disclaims any obligation to revise or update any forward-looking statement that may be made from time to time by it or on its behalf.

SOURCE Century Casinos, Inc.



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